Yet another American franchise is targeting Australia, with frozen yoghurt chain Tasti D-Lite sending out representatives to Sydney and Melbourne to examine the possibility of opening locations in major cities.
The announcement comes after a slew of American retailors have targeted Australia, including clothing chain Gap which intends to open its first store August 26, in order to escape the sluggish American retail environment.
Annette Ahern at the US Consulate General’s office says the franchise is hoping to leverage its emphasis on being a healthy dessert alternative to crack into the Australian market, which already has its fair share of yoghurt and ice cream chains.
“They’re exhibiting at the Fine Food show, on the US pavilion. And they’re targeting the wellness issues they can bring in their offering,” she says.
The company was founded in 1987 and primarily operated in New York for about 20 years, building up to over 30 locations. However, in 2007 the company was acquired by private equity firm Steelpoint Capital Partners and one of its partners, John Amos, took over as chief executive.
Amos previously acted as chairman and chief executive of Mail Boxes/The UPS Store, and served as chairman of the International Franchise Association. The board also has a significant amount of franchising experience, with chief operating officer Peter Holt previously serving as franchise-focused private equity fund Great Hill Partners.
On its website, SPG Partners says it targets companies with at least $US5 million in revenue and have an enterprise value of up to $US200 million. It has a portfolio ranging across the information technology, business services and retail sectors.
After the acquisition, Tasti D-Lite pursued an aggressive growth strategy. It moved outside of New York, opening a range of stores in Texas and other states, and is currently opening stores overseas.
Tasti has also transferred the majority of its stores to franchisees since the acquisition, and acquired two of the stores for itself.
Now, the franchise operates 39 stores in the US, with 27 of those in Manhattan and the surrounding areas. Another 11 are set to open in major cities including Los Angeles and Chicago.
As part of SPG Partners’ expansion plan, it pursued overseas locations. Tasti has two locations in Mexico and is opening another in the United Arab Emirates, to be opened soon.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
